The FBI’s Alert on KYC in Cryptocurrency Money Service Businesses

FBI Alert

In alert I-042524-PSA, America’s Federal Bureau of Investigation (FBI) warned that Americans using money transmitting services that do not collect know your customer (KYC) information from customers were “at risk of losing access to funds”, as the FBI is more likely to conduct enforcement actions against such platforms. During an enforcement action such platforms often face financial disruptions.

The alert reinforces the importance of world-class KYC integration in the cryptocurrency space. Users are increasingly aware of the risks of using crypto platforms with compliance deficiencies and are moving to companies that have a strong regulatory posture.

Kappawise Vet is an all-in-one Customer Due Diligence and client onboarding platform, which streamlines the Know-Your-Customer process. It ensures a prompt background check for corporate entities (KYB) or individuals (KYC) alike. Moreover, Kappawise Vet can seamlessly be integrated to any trading platform, internal CRM or transactions portal, with near-real time due diligence completion. Find out more about how Kappawise Vet can be integrated into your crypto platform here.

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